The city of Farmersville is without a set of apartments after Oak Grove Apartment shut their doors over the past two weeks.
According to information present to the city council at its Feb. 28 meeting, residents were asked to leave after the company who owned the apartments defaulted on loans and went into foreclosure. The apartments are located on Gaddy Street.
Calka Management, Inc. was the management company of the apartments and according to Collin County Appraisal District are owned by Oak Grove Apartments of Farmersville Ltd.
The complex is valued at $209,989, according to CCAD.
Part of the reason, White said, for the residents being asked to leave was that there was no hot water for any of the units due to a large water leak underneath the parking lot.
“They have not had hot water since November,” White said, information that was not known until recently.
According to Janet Calka of Calka Management Inc., the residents did, in fact, have hot water off and on until January and had the capability to boil water. She also stated that they did everything within their power to save the apartments, repair the leak and keep the residents where they were.
The leak was found in August, he went on to say, but was on the apartment’s end. The company managed to stay current on its water bill until mid-December with the city being owed $12,447.97.
White stated that the city will be placing a lien against the property in order to get the amount owed to the city when the property goes up for sale at the foreclosure auction.
“I believe these will sell and we will get the money we are owed,” White said.
Oak Grove Apartments, which has been in operation since 1999, has 24 units.
All apartment complexes are low income, Section 8 housing.
White stated that the residents have been relocated at this time, but that since rental properties are at such high demand in Collin County it “couldn’t have happened at a worse time.”
Mayor Diane Piwko expressed discontentment at the length of time it took the city council to be notified about the situation by the city manager.
“I’m not happy that we are just hearing about this after three and a half weeks,” she said. “There may have been something we could have done to help. The more heads that are put together to solve a problem the better the situation gets.”
White said that in the future he would keep that in mind.
The property is expected to be sold on the courthouse steps in June.
Editor’s note: Corrections and additional information was added to this article March 16. Shady Oaks Apartments, also located in Farmersville on Hwy. 78, are not under foreclosure and residents are not in danger of losing their housing. Princeton Arms, located in Princeton, is under foreclosure and expected to be sold soon.